Lin, Wanchuan; Liu, Yiming; Meng, Juanjuan - In: Games and Economic Behavior 86 (2014) C, pp. 184-211
This paper investigates the crowding-out effect of formal insurance on informal risk-sharing arrangements via theory and laboratory experiment. Our model and simulation predict that the crowding out of private transfers is often more than one-for-one and will reduce the total risk coverage....
